2007 (2) TMI 628 - HC - VAT and Sales Tax

Summary

Issues involved:
The main issue in this case is whether the Assessing Authority is required to re-examine the matter in light of previous court decisions and subsequent orders.

Judgment details:
The case involved a dealer of spacts, glasses, and frames, where the question was whether assembling glasses in frames creates a new taxable commodity. The High Court held that spects with frames and fixed glasses are not a new commodity and are not taxable. The Supreme Court dismissed the revenue's appeal, noting specific language used by the High Court regarding the exemption of frames and glasses from tax. A review petition was filed, leading to a modification of the High Court's previous judgment, stating that assembling frames and glasses does not create something new, thus the dealer cannot be termed a 'manufacturer' under the Sales Tax Act.

The revenue later requested the matter to be sent back to the Assessing Authority for tax assessment on frames and glasses sold as spects. The non-petitioner argued that tax had already been paid on frames and glasses, as mentioned in the assessment order. The Tax Board had previously remanded the matter to the Assessing Authority for factual inquiry, which confirmed that tax had been paid on glasses and frames.

The High Court considered the previous orders and concluded that tax is leviable on the sale of glasses and frames, even when sold as spects. The matter was remanded to the Assessing Authority for further inquiry into the tax liability of the dealer regarding the commodities sold. All revision petitions were allowed, setting aside the Tax Board's orders and directing the parties to appear before the Assessing Authority for further proceedings.